ABB: Q3 profit better than expected

(CercleFinance.com) - ABB on Thursday reported a better-than-expected quarterly profit and record margins, despite the current lack of dynamism in sales and order intake.


The Swiss industrial group said that in the three months to the end of September, operating EBITDA rose by 12% to $1.55bn.

In comparison, analysts were forecasting an average profit of $1.52bn, which was slightly beaten.

EBITA rose by 11% LFL, ABB said.

The group, which specialises in electrification and automation technologies, said its operating margin improved by 1.60 percentage points to a record 19%.

However, sales growth remained weak at 2% to $8.15bn, below the consensus of $8.34bn.

Orders came in at $8.19bn, up 2% y-o-y, above analysts' expectations of $8.13bn.

Regarding its outlook for 2024, ABB lowered its sales growth forecast to below 5% LFL this year, but reduced its annual operating margin target to slightly above 18%.

Following this publication, the share gained 1.2% in early trading on the Swiss market on Thursday, outperforming the SMI index, which was down 0.3% at this stage.


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